No Union Deal Could Spell Bankruptcy For Calif. City

Law360 (April 21, 2008, 12:00 AM EDT) -- The financial outlook for the city of Vallejo, Calif., remained grim on Monday, with city staff members reportedly unable to come up with a deal to appease unhappy police and firefighter unions that could help stave off a Chapter 9 bankruptcy filing ahead of a Tuesday deadline.

Efforts by city staff members to reach a long-term financial plan for the ailing city of 120,000 people in Solano County have been thwarted by ongoing negotiations with the unions, the San Francisco Chronicle said Monday.